Apple's iPhone 6 release approaches by the day. According to Far East suppliers, they expect up to 20 percent growth for Apple following the release of the device. Similar to the fast adoption rate of the Samsung Galaxy S5, the main selling point of the device will be the larger screen and improved display. Analysts note that the iPhone 5s has set an ideal stage for Apple's next big release.
According to a report by Apple Insider, Morgan Stanley Katy Huberty recently paid a visit to the technology industry component suppliers related to Apple. The suppliers talked to Huberty about what they expect from Apple's upcoming handset. Huberty included in her note to investors that iPhone 6 components should not experience any major bottleneck. This also suggests that suppliers and Apple should have an easier time addressing demand even with expected surge.
Apple does not provide a breakdown of sales for every model. For instance, it groups sales records for the entire iPhone 5 series instead of providing sales figures for the iPhone 5s and iPhone 5 respectively. Nonetheless, Apple posted a 6.7 percent year over year for total iPhone sales last December. This is slower compared to previous year over year the company posted in the years prior.
Analysts agree that the larger screen of the iPhone 6 can be a major driving force for growth. Hurberty believes that the upcoming iPhone may cost around $20 to $30 higher compared to the previous iPhone 5s. The increase in cost is based on the improved camera and larger display.
"However, we don't detect any abnormal component pricing pressure from Apple suggesting lower inventory, deprecation, and warranty costs along with the potential for a modest price increase and/or NAND mix change may help digest the higher (bill of materials)," Huberty explained.
Recently, Apple has been in the spotlight for exploring better display and camera technology. Apart from the much anticipated sapphire glass display, the tech giant has also reportedly started looking into bendable graphene touchscreen technology. Samsung made news earlier when the company announced a breakthrough in graphene mass production. It is not clear yet if Apple will explore this technology fully.